Steemit Crypto Academy Week 4 Task: Decentralized Finance (DeFi) | My homework task for professor @yohan2on
Today I am back with my homework task for professor @yohan2on, this is my very first homework and I have learned much more from him and here I am representing my assignment on decentralized finance (DeFi). I am not an expert but a learner so prof thanks for giving me this chance.
Lets begin the homework now!
Decentralized Finance (DeFi)
By its name decentralized means that it is a finance method which is not controlled by other third parties, you can earn get loans through DeFi without the involvement of any third party.
In decentralized finance there is a plus point that no corruption will occur and you will do everything transparently without being control by third party.
DApps
Maker
Maker also known as maker dao its primary purpose is to underpin maker dao's stablecoin the dai token and enable governance for the dai credit system. Maker is created and sold on the market to generate more collateral. Another thing that makes maker unique on the maker, dai platform is the emergency shutdown used as a last resort the emergency shutdown will stop and settle the maker protocol to ensure That everyone on the platform including cdp and dai users receive the net value of the assets to which they are entitled so the maker system is always protected against a serious threat digital assets.
Compound
A Compound is a decentralized finance or d5 protocol it is built on a system of accessible smart contracts built on the ethereum blockchain compound allows lenders to provide loans and borrowers to take them out by locking their respective crypto assets in the protocol its native token comp enables users to earn interest transfer and trade their money comp tokens are created each time a user deposits their crypto assets into compounds protocol those users automatically receive the comp equivalent of the deposited currency as collateral when making deposits. Anyone can create comp using an ethereum wallet and any of the crypto assets that compound accepts these tokens automatically earn the user Interest and they can be redeemed for the corresponding cryptocurrency at any time the interest rates are determined by supply and demand changing with each block that gets mined.
Synthetix
The synthetics network is a token trading network . The platform has plans to bring the same sort of currencies stock trading and other assets.
In the decentralized economic world of Cryptocurrencies users of synthetics are able to use erc20 tokens to bet on stocks, crypto assets currencies precious metals and other financial assets. real-world assets such as precious metals are converted into digital synthetic assets or synths; these synths are tokenized on the ethereum blockchain with all the qualities of erc20 tokens.
bZx
This is a decentralized platform for lending, borrowing and leverage trading and this is an important protocol because i think this is one of those projects that has really strong technical fundamentals and all that are good stuff that can make a coin go up in value. This protocol is built on top of ethereum so it's a sort of like a bit max for ethereum and i would look at this as like investing in a bit max early on that's how i would see this project so i see a lot of value in it however this is in my perspective a Long-term play. but if I make a profit than , I might get a little bit into some projects like this and I like the fact that the protocol is decentralized.
Uniswap
Uni swap is a decentralized exchange designed to enable traders to swap or exchange erc20 tokens directly from their wallets giving the multitude of erc20 tokens on ethereum's network. Uni-swap has emerged as the top decentralized network that automatically provides liquidity. To provide liquidity unisap operates on a decentralized automated framework that uses smart contracts to automatically provide liquidity.
The smart contracts act as automated market markets and balance out liquidity requests from traders to provide exchange services.
Uni swap is an open source platform anyone can create an application on top of uniswap and get more functionality from the practical.
Special Mentions To professor @yohan2on here is my homework task, I am new and possibly I can make mistakes but I will work more hard..
🌻Greetings🌻